Refusal of CTS: how to use it in conditions of inflation

Until November 15, companies had a deadline for depositing Seniority Compensation (CTS) to its employees, the purpose of which is to ensure the loss of income of employees upon termination of employment.

The CTS deposit is paid twice a year, in May and November, and the amount may vary depending on the company’s working hours and days worked. “To have an idea, it’s close to 50% salaryplus a sixth of the bonus, that is, his annual CTS, will be a little more than a monthly salary, ”he explains. Humberto Leonbprivate banker at Sura Funds.

In a situation where, according to the provisions of the Law, KTS is freely available, that is, employees can withdraw it, it is important to treat this money responsibly. Just in case you’re thinking about a recall, an investment expert offers advice in the context of when inflation hits our pockets.

1. Don’t just save, invest: “Inflation hurts our purchasing power because it forces us to buy less and less for the same amount of money. In this sense, investing becomes a more convenient option than saving, because it will allow us to multiply our money by generating income that compensates for losses due to inflation.”
2. Estimate the investment of part of your capital in dollars: If your salary, bonus, or CTS is denominated in salts and you want to invest a percentage of that wealth, an interesting option would be to do so in dollars to avoid single currency fluctuations. “The dollar is a strong currency, so investing part of our savings in an account or fund in this currency can help achieve a more diversified portfolio,” the expert explains.
3. Learn about alternatives that give you more returns: CTS is currently available for free; however, this does not prevent him from changing in the near future. “The CTS recall option should be very well valued and inverting it is a good alternative if you have the appropriate advice. Many assets have fallen in price, so there is a better entry opportunity for an investor with a medium to long term horizon.

Remember that before making decisions about how to invest your money, it is important to obtain information and consult with experts who will help you define your profile as an investor and build a portfolio with you that suits your needs and goals.